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The company of the tech billionaire Elon Musk announced on Friday after the US market closed that its board of directors would agree to a three-for-one split if approved by shareholders at the next general meeting. Tesla had already announced in March that it was planning a split. But it was not clear in what proportion.
Stock splits don’t actually change a company’s market value, but they lower the price per share. The stock can thus become more attractive, especially for small investors, even if many brokers are already proposing to buy part of the shares. However, the measure is highly regarded by companies: this year, other large US companies such as Google’s parent company, Alphabet and Amazon, have announced fractions of shares.
Tesla’s shares have recently come under severe pressure during the general downturn in equity markets. From last November’s highs, the price has fallen by more than 40 percent. Tesla stock closed at $ 696.69 on Friday. The announcement of the stock split initially led to slight price increases after the market. Tesla also announced in the announcement that Oracle is the founder Larry Ellison would like to step down from his position on the board of directors.
RBC leads Tesla to “outperform” – $ 1,100 target
Canadian bank RBC upgraded Tesla to “Outperform” from “Sector Perform,” but lowered its price target to $ 1,100 from $ 1,175. According to a study available on Monday, analyst Joseph Spak is very optimistic about the short-term electric car maker. The rather low delivery expectations offered the potential for profitability surprises in the second quarter.
Tesla stock fell 7.10% to $ 647.21 in NASDAQ trading on Monday.
AUSTIN / NEW YORK (dpa-AFX)
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